If you have a teenager that will soon be getting a driver's license, you likely have concerns about how much auto insurance will cost you. Insurance for any new driver is going to be more expensive than for an experienced driver for obvious reasons, but that doesn't mean that you can't save money while getting them insured. Here are a few tips that can help reduce your overall insurance costs.
Ask About A Good Grade Discount
Without a way to tell how responsible a new driver will be on the road, insurance companies look wherever they can to see if they are going to be responsible. That's why it is worth asking about a good grade discount. Showing your insurance company your child's report card can potentially earn you a reduced rate. Just be prepared to forward a copy of their actual report card, since they likely will not use the honor system.
Use A Safe Driving Tracking Program
Many auto insurance companies are able to offer a safe driving discount for anyone that exhibits safe driving behavior on the road. This is done by placing a special device in your vehicle that reports your driving behavior. This includes accelerating, braking, turning, and even what time of day you drive. Signing up for a safe driving program can be a great way to reduce your insurance cost for everyone in your family.
Have Your Child Drive The Least Expensive Vehicle
If you have multiple cars in your household, it is worth having your child drive the vehicle that would be the least expensive one available. This is because a cheaper car is going to be a lower risk to the insurance company since there is less that is paid out in a total loss scenario. Make it clear to the insurance company that your child will not be driving any other vehicles in your household.
Reduce Your Coverage
There is some insurance that is optional if you outright own your car, such as comprehensive and collision coverage. This insurance covers the damage to the vehicle that you or an insured driver causes. Getting rid of this coverage places more responsibility on your teen to not get into an accident, but you still have protection for the damages they may cause to another vehicle. If you trust that your teen will be a responsible driver, this is a great way to reduce your premiums.
Contact an auto insurance agent to learn more.